Tax receipts for August beat projections by 3.5 percent. Minnesota Management and Budget reports revenue from sales taxes and individual income taxes was strong. It's a turnaround from July, when revenue was lagging.

Management and Budget Commissioner James Schowalter says better-than-expected sales tax collections last month helped pad Minnesota's budget. Since February, tax revenues have surpassed estimates by $148 million. An economic update will be released next month and a new budget forecast will be issued in November.

Republican Sen. Dave Thompson told the Star Tribune he isn't looking to collect more revenue, but feels the current policy is hurting Minnesota retailers, like Target and Best Buy. Supporters of an Internet sales tax argue online retail giants have an unfair price advantage right now.

Minnesota Management and Budget reports general fund revenues were $107 million less than projected last month. Gov. Mark Dayton and legislators will get an update on the state's budget forecast February 29. The forecast in December showed Minnesota had an $876 million surplus.

State law requires new car owners to pay a 6.5 sales tax regardless of where they buy the vehicle. But the Revenue Department says some Minnesotans are setting up shell corporations in other states avoid paying taxes on pricey purchases like motor homes.

After two and a half hours of debate Friday, Republican Senators agreed to reduce and eventually eliminate the state’s property tax on businesses and give married couples an income tax break. The $100 million dollars in tax revenue would be covered with the state’s budget reserves. The House has passed companion legislation, but there are several differences. Gov. Mark Dayton does not support the proposal.

The state has slipped a few rungs in a high-profile ranking of child-friendly states, largely because of its growing number of uninsured children. Minnesota is still No. 5 in the 2012 Kids Count data book, but this is the first time in 10 years that the state has ranked lower than No. 3.